I am signing a consulting contract with a foreign company. I am a US citizen residing in California. Which taxes will I be responsible for? Will I need to file them quarterly or once a year?

[DavidS127 · Accepted solution]

If you are a U.S. citizen or resident alien, the rules for filing income tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.

But, if you had income from foreign sources and were either a bona fide resident of a foreign country or were physically present there for most of the year, you probably qualify to exclude some or all of your foreign income from taxation by the U.S.  Even if you don't meet those tests for foreign income exclusion, you get a credit for foreign taxes paid on our income.

For the federal and California taxes you expect to owe on your consulting income from the U.K. contract, you'll need to make quarterly estimated tax payments.  

Click here for an IRS website that explains paying Estimated Taxes. 

Click here for a California FTB website that explains CA estimated taxes.

You should also check for any responsibility you have for paying taxes in the U.K.

See the IRS website at this link for more information, and other links to the foreign income exclusi...